Reed’s Inc. (NASDAQ:REED) shares traded lower over the last trading session, losing -2.86% on 06/09/21. The shares fell to a low of $1.00 before closing at $1.02. Intraday shares traded counted 1.58 million, which was 50.38% higher than its 30-day average trading volume of 3.18M. REED’s previous close was $1.05 while the outstanding shares total 86.63M. The firm has a beta of 1.19. The stock’s Relative Strength Index (RSI) is 52.51, with weekly volatility at 7.75% and ATR at 0.10. The REED stock’s 52-week price range has touched low of $0.57 and a $1.68 high.
Investors have identified the Beverages – Non-Alcoholic company Reed’s Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $95.43 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Reed’s Inc. (REED) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 20.44 million total, with 14.74 million as their total liabilities.
REED were able to record -5.15 million as free cash flow during the 08/16/2021 quarter of the year, this saw their quarterly net cash flow reduce by -0.44 million. In cash movements, the company had a total of -5.06 million as operating cash flow.
Potential earnings growth for Reed’s Inc. (REED)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/16/2021 quarter of the year, Reed’s Inc. recorded a total of 12.15 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 21.6% coming in sequential stages and their sales for the 08/16/2021 quarter increasing by 12.09%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 8.29 million trying to sell their products during the last quarter, with the result yielding a gross income of 3.85 million. This allows shareholders to hold on to 86.63M with the recently reported earning now reading -0.05 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/16/2021 (-0.05 cents a share).
Is the stock of REED attractive?
In related news, Director, Bello John bought 95,000 shares of the companyâ€™s stock in a transaction that recorded on Aug 13. The purchase was performed at an average price of 1.10, for a total value of 104,266. In the last 6 months, insiders have changed their ownership in shares of company stock by 5.40%.